LyondellBasell Industries (LYB) 28 Oct 222022 Q3 Earnings call transcript

Hello, and welcome to the LyondellBasell Teleconference. At the request of LyondellBasell, this conference is being recorded for instant replay purposes.

Following today’s presentation we will conduct the question and answer session. I would now like to turn the conference over to Mr. David Kinney, Head of Investor Relations. begin. may you Sir,

Melissa. you, Thank

forward-looking learn and also will Investor about non-GAAP reviewing forward-looking useful are uncertainty. We available slides to significant statements Nonetheless, we and excluding begin out encourage We the call Comments and forward-looking you are like as actual to point Today, items. I financial available presentation our while non-GAAP to business believe Relations making differ regard the factors the to in subject results risk share, this a measures such our financial slide underlying discussion, could some we by results our measures, lyondellbasell.com/investorrelations. be in that to per identified at call our would more discussing reference based lead presentation regulatory the our are that on results on upon our alternative earnings measures. which to website made the Before will business be EBITDA and accompanies using is statements statements to cautionary are reasonable statements the website. and assumptions, the and filings, investors. today's on

to measures, this XX by code call provides XXX-XXXX XXXXXXXX. XXX-XXXX available by (XXX) outside November access will website of Additional States. our telephone discussion. beginning Eastern calling United of recording numbers for The until at X:XX the release, is results documentation today A the on and investor in be the together United p.m. in both States; (XXX) disclosures, earnings time non-GAAP GAAP financial including reconciliations other measures financial with our business

Intermediates our Advanced Officer; Olefins Derivatives Chief and of and of Peter Vanacker, our Reman, Ken Michael Joining Tim Torkel Polymer Refining; of Global and today's call Solutions. President Vice EVP McMurray; LyondellBasell's EVP our Foley, our Executive and Executive CFO, Polyolefins; be will Lane,

being and third With our call During to results, now like to dynamics turn market the on current that near-term said, today's call, I we outlook. over quarter will would Peter. focus

all to results. you. discuss joining our today Thank us as XXXX quarter of you appreciate We you, welcome Dave, we and third

on Let's Slide number begin safety our with results X.

receive continues is employees half metrics safety our a seen Safety our reflect outstanding roughly XXXX. company continue the rate contractors in deliver value cornerstone and and attention. team our performance and success. our is culture commitment of will company's utmost LyondellBasell's year-to-date X.XX, focus to will for recent The at remain and rate incident core Our key of to enabler future a years. in a the

to our X turn number results. discuss Slide to financial now Let's

quarter, highlight our strength attractive provide to stages continuing while shareholders market past range the through a and strategy strong headwinds our us to of challenging $X.X an The EBITDA $X.X liquidity. of the we from move billion. balance differential was balance months. impressive returns value to of LyondellBasell's all capital cycle. XX company for with X, our generated Slide confidently and approach cash cash as Nonetheless, and billion increased investments Earnings of costs and of business $X.X advantage invested activities. end existing of delivered a total team and LyondellBasell's operating billion return During enables on share. were the per the very and the on sheet remains weaker third some the you environment. over well-known, navigating to while same conditions. emerging to we On very headwinds significant XX% of disciplined faced from our of quarter, number generating we Despite our returns high and portfolio $X.XX By would $X.X at business sources capital available expect, forward short-term cash had over time. allocation rising demand generation focused billion our the of

benefit the from concentration. our Our part operations, global underway mentioned management geographic provides of of widely that commitment DNA. star our I diversity, to and values businesses leading end These company quarter, markets, both our principles LyondellBasell's safe are risks portfolio and a recognized for deep operational decisions. that identify is for from excellence. cost market in the strategic and and to work the reduce portfolio Last diverse positions north is balance guiding clarity market

solutions will this economic Some our of generating to provide resiliency returns. We circular the early and forward. and adds emerged work wide scenarios. leadership an value under a our high path essential as advantage believe for of and range parts low-carbon and low-carbon decisions solutions capability has in quickly Market of from circular

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with Our least the per by current these XXXX, unit at tons way. leading to of million X year new goal products is our business sell

sales and business the new agreements million few perspective, In solutions low-carbon For tons have past weeks, regions. X for our just XXXX announced participation we represents of circular and about to in related several our our polyethylene several of capacity polypropylene. global XX% in

will mechanical convert facilities We plants Germany. recycling. on solutions longer for waste a In MoReTec recycle China, and another Houston required using sorting post-consumer we that in usable and mechanical content forming or seeking joint will year in the sorting venture to LyondellBasell's our their our first lower increasing accelerate are preferred feedstocks the to of the plastic venture are and circular recycling plastic of supplier low-carbon advanced of we advanced future mechanically as facility products. Germany, a brand the and will and business In facility. expect partnering actions waste position recycling for into am Technology. to gas customers waste feedstock plants provide a confident greenhouse proprietary offering tons and their we I circular XX,XXX impact material the LyondellBasell automated And amount for are joint per India, the developing for Guangdong Province. in fully The owners these

with additional recently our for and methodically quickly attractive example Chevron and Air is robust collaboration Liquide, We're low-carbon of Gulf project hydrogen progress. on solutions our U.S. building circular but and support Our to chain Uniper ammonia growth one Coast low-carbon business. supply announced a a and opportunities

with and in turn opportunities of has discuss program. modest as leader the cost years a a in focus number significant investments X costs, can with have a untapped launch singular LyondellBasell our be well-earned our believe managing to on untapped XX We after incremental value value enhancement a reputation unlocked of Slide resources. this Let's value But industry. number accumulated.

we're just and validated Our opportunities program utilizes excellence. of X,XXX procurement and commercial value started. we and Over into organized implement methodology initiatives We and track more across progress categories: company. chain to X,XXX and identify, manufacturing stage the IDs generated, operational have proven But hundreds a three on date. than to have been initiatives gate excellence, value getting enhancement supply

We have our by capable confidence process EBITDA with annual place, in we enhancement million the recurring XXXX. value improvement end continuous forward goals. program of look of regularly achieving of the an our evergreen estimated that is And to extending $XXX

progress forward Markets our March. on you upcoming during this Day keep will We Capital program in sharing and apprised of look our to details more

call leaders organizational new the for to Before this responsibilities to would I call. over business I the describe Michael, turn the on like

more the Torkel’s the develop responsibility will the who Lane India. as financial and full APS call this culture led reporting turn O&P Africa, at segment and more our business Kim to the And the Ken a manufacturing, leader, CEO and segment. and well value in on polyolefins relocating Joining finance will charge business for LyondellBasell's our Advanced focus proven is leader assumed who is Derivatives Polymer market and that differential company Torkel in served supply Kim us our chain. order roles, to Torkel a service experience companies model Jim Foley, strategic will of will our our the for APS our of that, leaders appropriate leadership be other planning, of is to broad to Rotterdam our most and from In I each of Torkel leader prior for our Michael now and company a Ken segments. have ago has a a as and other She voice who is the began deep and responsibility of Solutions Executive then chemical APS than business a over businesses. in range value XX a formally role. is of us two in first for continue career requires results Middle as knowledge our to years engineer Rhenman. Committee. today business. to describe with will Guilfoyle, with call service her in detail. East customer Rhenman With to and Intermediates on potential olefins the segments Refining serve Europe, and spanning maximize

Thank LyondellBasell generation. of me last we the over turn from and to good track a Please morning, you, $X.X that and robust Slide Peter, are In months. generated the of describing activities third extending cash quarter, X, how everyone. towards total by record let billion operating billion contributed XX $X.X of cash begin our

billion third Our hand increased of cash on $X.X at quarter. the the end to

the provided of generation cash During return cash. EBITDA converted past billion robust $X into XXX% efficiently This quarters, months. our the LyondellBasell last of four for shareholders team XX over the to efficient and

with LyondellBasell to focused and allocation the continue provide quarter. our the generation for review details allocation Slide Let's strong The on capital disciplined third returns cash X shareholders. of and remains our team during

quarterly million $XXX repurchases. dividend to through During our shareholders returned the and our an million through share additional third we $XXX quarter,

growth We of We for unit are the start-up remains first in regular construction for our track My in portion funded with beginning to our in reporting that in XXXX. $XXX our projects maintenance strategy capital plant and continue our on the final strategic significant and progress the rigorously expenditures, look world-scale million quarter this a from track to finance enhancement value XXXX. value stages program. capital capture ongoing leaders on invest business of to teams PO/TBA forward partnering with

during $X.X delivered of overview each segments for Now, of of like an EBITDA third the XX. our quarter. the Slide LyondellBasell's business to on billion provide portfolio I'd results

all costs Our global rising segments to reflect across weaker due demand. compression margin results and

olefins and Our volatile high polyolefins cost, and and coupled persistently Europe with energy businesses particularly in lower China. faced demand,

were business strong, fuels the segment. our continue quarter Solutions refining second earn Higher for assets, impacted raw While peak for XXXX. of results in period and transportation Across margins cost Polymer following $X.X materials, costs energy negatively billion than Advanced XXXX. and energy, are lower averages demand higher labor historical to the segment September European our oxyfuel remained margins and sequentially above same our year-to-date in

million $XX cost recognized related our in During quarter, business. from to refining the we the exit

costs five to We call expect each for With the incur amount to the over I'll exit of turn similar that, Ken. quarters. next during refining a

Thank Michael. you,

Let's and with XX begin segment. olefins the Americas Slide our discussions polyolefins segment performance the on of

to customer lower quarter combination product destocking $XXX North of resulted in supply Third additional and the of O&P Americas EBITDA In prices. assets expectations decreased from million. America, new

lower by costs. rates lower During Margin the energy continued demand moderating expect markets further will constraints. LyondellBasell offset to seasonal well fourth will logistical lower quarter, inventories. additions expect with demand manage our reduce capacity we supplied. of be easing Also, demand, pressures could and keep and we feedstocks operating match and to continue

in of to a expect at our operate O&P fourth approximately XX% rate We Americas assets the quarter.

waste Cyclyx plastic and proactively sorting our in to to long-term While recently we Houston. a a with new announced facility build We strategy. market remain XXX,XXX-ton partnership ExxonMobil conditions advance challenging, continue

our an to U.S. participation industry consortium Coast. production we a facility Beyond the evaluate recycling, in along hydrogen Gulf announced low-carbon

moving carbon and and to quickly reduce are footprint. We circularity increase decisively our

please volumes Slide plastic severely demand maintenance converters and LyondellBasell's in Germany. Now France, costs tight supplies in our downtime pressured the consumers. our polyolefins ethylene at to by from review to both extended reduced due cracker gas downstream planned performance to turn of cracker declined Asia XX that higher markets European and and energy our at European were International olefins segment. and and Europe,

of quarter All of to this in combined million. EBITDA a result third loss $XX

During the quarter, persist. expect we will energy volatile high and fourth costs

add demand markets. on further is addition, European In slower to seasonal likely pressure

plan formulas volatility prices assets costs product European the response these quarter. and businesses by for approximately pricing. operate to we account energy and variable Also, to and in ensure fairness these year, surcharges. energy of escalating our reflecting our Europe Our capacity in at This pricing to margins, lower XX% introduced fourth with demand energy surcharges have for O&P to during we responded

we the restart have announced, O&P France in of integrated postponed previously As site our early XXXX. until

continue facilities in circular China and while demand allow in our October, in and we India. In fit-for-purpose Americas, swiftly a for the focus low-carbon rapidly in to circular strategies on facilities long-term partnerships global develop sorting fully in new for business. announced As automated and and waste support rising of addressing we facility partnerships to Germany mechanical renewable each These recycling region, us solutions. plastic

opportunities procurement to that see ideas and Finally, customers mentioned. call with I to over value want enhancement about manufacturing, board, program in express to Across the am how serving capture the I the value we With more Peter our generated Kim. that, improve excited the being efficiently. I'll turn

you, at call. Peter, look Thank XX Slide we as you, thank beginning and the the Derivatives remarks Ken, for Intermediates your of to the at segment. turn and kind Please

the improved margins loss of quarter, for quarter quarter Following supply second second record the deteriorated and declined the outages. EBITDA margins ethylene fourth bring as market $XXX remained segment styrene material quarter, Styrene but relative goods. million. In and Propylene to costs third above business to the are improve demand a to softer a to moderate styrene breakeven. following lower to margins Oxyfuel quarter, second industry declined raw margins durable historical for to continued expected averages. the on closer oxide benzene

joint on we first high plant venture and We margin Overall, at lower start demand propylene months up quarter to track Houston during we energy of costs our oxide quarter. capacity at our global during will new across styrene December the further and IND PO/TBA we due to production fourth run in As to styrene, the the XXXX. expect of outlook idle during to XX% compression the of IND to approximately European demand. expect, and for assets improving product weaker remain our have November lead lines. monomer seasonal decided Despite remaining Dutch the the most

we the implementation completed as steps done and the be the Lastly, have enhancement by to for value portion we year-end. program, validation look IND of to the plans forward

to discuss refining Now results segment. and of XX let's turn Slide the the

refinery exit but call in of by over term, reliability to we safely strong spread margins with plan to expect the In high the Maya capacity an crude we business demonstrates refined will X-X-X strength averages. We XX% second spread third to about The quarter. tight these demand. XXX,XXX the barrel, third strong following remains barrels operate commitment the the In the turn The third the rate of historical per run to on moderating we an refining near million and to Due driven the capacity refinery planned X-X-X quarter, a quarter well at operated EBITDA Maya extraordinarily until successful that, demand above to for XXXX. of with during day. per $XX XX% the maintenance, at completion quarter planned $XXX the fourth quarter market the above maintenance decreased the declined products. average end during our With Torkel. of I assets continued

I'm business. you, team. the integration focus With extremely Kim. complete, look now forward the and this of customer Advanced Thank maximize to our value agility, joining I excited speed increasing be to to Polymer Solutions

let's results review quarter the Slide Now third on XX.

one million. was unplanned both Solutions Polymers decreased business EBITDA business higher pressured by $XX roofing and to Compounding customers. due the polymers Advanced quarter our costs. for catalloy the our Volumes at Third & of feedstock major downtime were and Margins in energy

initial results the quarter provides low-carbon fourth and for natural of considerable with during solutions, our witnessed is team segment improvement and meetings customers opportunities. our business expect automotive from have actively for with value the increased volume The circular We demand these small a In LyondellBasell's a this similar solutions. APS chain growing from and the addressing my extension APS sustainable production.

As potential. APS a our platform we that believe has of Peter mentioned, lot

also the a Peter. that, back delivering instil initiatives. more value customer-centric With to our will highly to will turn call While have we autonomy business will for from I our accountable team be some model,

successfully technology To Jim LyondellBasell for the team behalf you our and of XX results let's on segments, the again this Seward. to challenging Thank close navigating our entire discuss to out turn business quarter. for Slide

provide quarter will EBITDA licensing decrease results for due by to roughly for signed technologies quarter XXXX. the seen business one licensing million our fourth beginning lower will far catalyst slow Asia fourth volumes agreements results Europe. the we macroeconomic After to and declined quarterly polyolefin third quarter thus catalyst moderate due the will our half to XXXX, outlook. revenue Technology estimate in on in Third be to during $XX In process demand. to new that quarter, lower segment weaker in We million expect six five the $XX demand projects of a and

Over the company, we of XXX sold in continue polyolefin this to LyondellBasell has our than around leader more be the world, history a space. licenses and

As LyondellBasell the developing to good recent plastic underway advanced our quarter. during in at Germany, a hope the reach innovation work impressed commercial scale creative to the technology. an on further was making indicated launch legacy investment recycling provide you plant rich activity initial to this by for feedstock decision my in visit by secure technology in And I progress our our of waste are we and MoReTec exciting Italy, fourth We with technology. and to updates center

Now third with company summarize let very challenging our our Slide outlook and our delivering the XX. markets, team results. Despite is me for quarter

on our and our one team variety performance from workforce. commitment economic is passion to goal conditions. I see priorities Our forward core under indicator across remain on is values. of the capture just move outstanding LyondellBasell's safety of The and a focused We value that strategic

to customer for to focused refining the With third during that under above third of LyondellBasell We position weaker growing secure our differential quarter, business. oxyfuels In returns business commitment are energy demand our rapidly the low-carbon our averages. $XXX are leading moving demand, costs. share and and balance. the repurchases these partnerships businesses multiple from strong. O&P plastic new dividends and our offsets million remains on is often diverse over Circulen advance products. businesses the provides margins of supply waste businesses pressure and enter remained with solutions Our to our recognize provided to circular and feedstocks historical the portfolio shareholder required serving quarter, well With in needs higher

ahead weaker In further demand response, match demand. operating fourth the lowering seasonally rates fourth and Looking to quarter, will we reduced anticipate proactively energy to costs quarter margins. pressure we volatile are

star drive optimizing balance stronger for initiatives. developing Our are could markets business recovery our during that LyondellBasell's We'll further initial working to global leaders watchful around strengthening strategic I market you in as sheet flexibility. can and improvements excitement progress towards remain XXXX. economic our China in hope guide north capital sense activity help the a

we quarter, the organizational the and business solutions structure established low-carbon unit. During and new a launched circular

that enable LyondellBasell are unlocking prospects our also models to program. We're structures energized initial enhancement the quickly the new leadership the our value needs. our identified building business advance around We and highly customers' address strategies will and opportunities that with by of

put and Day opportunities we into support the at clarify leverage of look end by understanding coming value to Capital In should target our organize, XXXX. next annual and now progress. totaling New our have in in to take LyondellBasell's aim months expertise details We the place closing, recurring pleased strategy. LyondellBasell's and to core EBITDA of forward We questions. Markets your that track to forward We're management the infrastructure more your March over sharing required competencies York and $XXX million

the of of line Please America. proceed Our Bank comes from Instructions] question Byrne from Steve your [Operator question. first with

the cost maybe of the dig like now, road? would in your capacity days, talking a given longer that to on that pretty considering quarter, And I'd on demand you right competitive capacity, of some about starting the high you fundamentals see PO/TBA these cost potentially with the you do some how PO/TBA curve potentially the chlorine a probably are first plant and how assess be start. view you your landscape think to term, that of do you PO/TBA is going . is in you're up in competitor first idle down I on given got have with rationing supply delay the

PO/TBA No plant. on the Thank delay you, question, Good here. in the startup Peter Steve.

This quite QX a fall, alluded PO/TBA favorable the we mean, the plants, we is I are, results, side. our costs world-scale have well in As very with on integrated. to

is that marketplace, the positioned independent to up we no what plant, therefore, happening start very and that So in well changes. believe of we are

Our next your with question. line with comes from of Juvekar Citi. Please the question P.J. proceed

venture of are And economy. return on When you this of couple and have Liquide, the targeting? any a I hard a capital like guess will with Circulen, XXQ bit Uniper. your on Air sectors that to questions to on new capital. Chevron you passing electrification about the ethylene? update related then you you the joint about ensure your Just structure can credit. And look with related kind of you the Circulen talk think that? return and IRA your do at little your on And abet How secondly, decarbonization, cracker what on contracting

P.J. as usual. good Thank questions, Very you,

this Circulen we mean, stage the back, at very economy, coming year. the Kfar But in On and are I just early from the Dusseldorf.

as the circular this know I renewable around and brand amazing that solutions, as producing every packaging. an from the from is owner years the two both, organized mean, companies well positiveness was actually that You side were

to we of chain. pay, that that was willingness value demand, some And accelerate there course, as across volumes the being that brought mean, of quite the noticed a consequence, is So amount I there to into marketplace. the are

on see last second Ken. Then that commitments proposition, couple a seen the value is business because that strategic to this are we gives are, attractive. you weeks So question during have on we the the that you, creation IRA, as as us accelerating that quite of the question of unit with I give will the which we that

we've the depends sure. XX% you COX all infrastructure put exploratory start those making at coming more out around very now, and out electrification Yes, out potential we look progress every you going to Thank the P.J. share help. we're around coming When looking on site COX these of see or as to our there. certainly, the location other right to changed for is IRA our the exploring tax available targets is carbon good that options in the and for you in question. of options things benefits like But sequestration to later. different. the that really is that has phase the that bit we're some talking today. of sequestration going about before and But in reduction a we're commented keep on what those reaching can you terms not And reduction And what XXXX, of to about of site portfolio. more months, for in going It the little be the it's is we'll it. technologies imagine, assessing what able like

proceed Arun Markets. question question. comes next from Viswanathan line of with the Capital Our RBC your Please with

provided I guess on shake I have discrete the but get items just wanted to it's including some years could $XXX next of how early, couple XXXX. you know still your here, perspective I out. the million by

you move And were be What X and then QX go EBITDA? if annualize next then assumption? maybe and some and just there's into QX to of we QX Hyperzone new kind the through level. year. we your projects. some into to of maybe $X as given X a that X, extra that prof layer of you your would the investments up Is some fair in billion, PO/TBA EBITDA if of range, at billion you that well seasonality is consider level $X.X as say mistaken a Would you the trough uplift from as EBITDA So around gains of other

me that Let question. take here speaking. Peter

And the mentioned increasing a $X.X couple that alluded what billion. you $X in to venture $X.X venture China, bridge Sasol to, one of you about joint we have the we or that POSM from being joint the talked was as the past the billion elements Zelman mid-cycle As these earnings, acquisition, billion, with and joint then venture investments in PO/TBA. Hyperzone that Louisiana, well our as

run by that increase line commitment the a on you XXXX. our that, XXX of value end rate on may bottom by top So know EUR on the of to million

strategy. that progress So developing still year of $XXX the that we that if means Star you look our And to expect, million. course, mean, fully of at I North capture XXXX, are that in we

that launching mean, in we by come on about may enhancement -- experience a find that the Day create by year, first that Capital value. run value year, other then be I question basis captured to the by Markets projects rate to more that expect year. up, XX% in on and with one opportunities these So next if In what March, comes that in can first end of case the

So transformation place, in this sequencing XXXX the starting we value is a teams to due is immediately. of different we office the not capturing, fact towards that have something completely the back have ended that already in the that the topics place

Our comes your Josh from proceed with question. next question UBS. Please of line the Spector with

within Just O&P. on assets your European

So I base changes take today actions of you environment you're And in about next this other continue persisting kind you year if to thinking of to to line mean more the plus, asset actions would I the take address profitability. that optimize to there energy we some for are the are taking of along further guess guess you think making your further? lower I changes, where and region?

I quite question. management And say for to already been team has joined it's up crisis running course, needless months that, even you of some company. before thank Well, the since your our and

we is happening to monitor that to continue very I call to the we We alluded marketplace. what actions undertaken. on in mean So intensively the the had

are the be to then cracker. situation cracker to that the at every up marketplace in start will year. Berre will But right we needless time not week start So of what this to define to that end the the say the monitoring in France prior

ongoing we Germany, in smallest to have addition that, OMX so-called currently of scheduled the crackers the In steam shutdown steam in cracker. a

also in that there, multiple evaluate market or we styrene on-purpose been again. alluded we what been monomer on would the idled to that of has that And Rotterdam, up asset to take start joint on course, have question, be because and startup. And Kim course, then, the is there action is will site we time. then in to the we being. developing, they of up that styrene that hear, the that the not started profitable have any venture expect that production will We time or monomer markets idled delay for how And especially be also even

of proceed your Our question. the next from with with comes question Jeff Zekauskas JPMorgan. line Please

have Chinese Or does oil Brent from is I sort not can Does a discount margins? . that China that you for petrochemical days. these characterize of And the influence petrochemical the to Chinese purchasing purchasing, discounted Lane. margin? the think provide China Russia. a being cushion -- of question a it to polyethylene market purchases at I Ken price Chinese state

for Sure, question. Good from Thanks the you. to hear Jeff.

is that we're oil happening priced market to China in What's refiners on the lot demand just of into seeing because is So what by new historically our a imagine, capacity investigation view that terms can is is lower the the driven as there. But China there we've at and we're lot polymers. actually in on. the coming for we're of passed that done lot market, and the state-owned spreads and low really of capacity related going being more you seeing a not higher into feedstocks the in the that, of to a lower

market, what recovery the in may expecting So we that already call, even has back -- Year, China not the not some to New really see in after materialized. be China is going that demand back you see recall, we've about talking and of the larger Chinese to quarter seen going driver first just were in come earnings to which the even is to as want midterm yet, growth in and we the

a So absorb capacity, once China. see a spreads and more demand normal I starts you're of to we to return new to in going see that all of think that then to the start level

line Our with your from proceed next question. question comes Capital Yefremov Markets. Please Aleksey KeyBanc of from the

Could your prices Europe how of place same We IND down provide factors profits to much were would mark-to-market, as like in and all recent if EMEA attempt a come in the you bit weeks. perhaps better energy well. of be have these sort quite kind energy other in prices stay saw in and in

want to can, Do first, you you your make what’s comments on views this.

way believe it competitiveness targets improve because and then more competitiveness related might do feed that the energy our is that the lower and finding feedstock costs we're assets. reduction some costs COX some to that improve term, in we consumption What our and of headwinds of or a And the we flexibility going longer COX see energy we that the will at to assets one If to be frankly, seeing make that more energy obviously, are that is of Europe, slate winter, be reverse. be looking is and we're the position. to in view efficient that cold going not, can competitive. is in of My moderating cost the short-lived. by around But ways by those we we making that have our assets have a our improving could the things to

over think more currently a lot things not short about the that but are to that So what's make going the happen in you thinking region. we how term, competitively very happening don't we're term ourselves And here. longer of focused time on let position in we're

the in European that for energy XXXX billion to all I to of perspective, year-to-date, costs $X.X And same were course, be us higher in put mean, compared period.

broadly, to and make And analysts dramatic. think should I Peter, you QX. well. are will It August a But July. costs. missing then QX reasons the kind better in are deteriorated we bottom. in QX. it want with comments an as assets, substantially fixed which versus out, October, to sequentially down perspective all today than help forward look and mean, some investors seasonal lower demand be September feedstocks in into maybe energy And as and lagged as I both kind from like We're idled the absorption be a seeing things feels to heavier cost would some say, persistent curtailed we're energy, maybe sequentially be enterprise was release pretty September. facing bit pointed and And to finding it curtailed were high-cost than in we're our further. And those relief of inflation, highlighted of you weaker we And clear, and

effect third from quarter. also again full experiencing the So prices and we're -- of the lower

to So August. July again, from dramatic drop-off

down. will So be sequentially we

proceed of question from your line comes the Our next with Vincent Andrews question. Please with Morgan Stanley.

-- any, about get that to things speak million appreciate little in what an and are more detail to you I more on the area the Could to you're focus show in cash also up comment EBITDA your after doing XXXX million? are the could if the going with that you until And results? see $XXX taking on it a costs maybe if associated some $XXX would bit program are what,

Vincent. Thanks, question. very good

office projects. I functions, very one sites. so set workshops in transformation X,XXX supply do across mean came the also we large our procurement this in but back. the functions, chain me number manufacturing of commercial U.S. out functions, functions, have early step of bottom-up a important and And around organized different Let this largest stage that IDs

get the already So do not sites. we and we smaller not covered IDs European yet have of covered have materially see value. lot to create of how IDs demand on CapEx. But not higher we higher the that yet these we region, And or lots OpEx a

course, of are these the there will And range. So that, very we a course, ones broad focus upon. of can be, it's

market don't about creep the the do of because projects it's it portfolio. a capacity we in here entire will very, need we will mean, we is range, have projects very not be broad of later. But about It They clear if terms situation, that I a that management. will first. is So the come energy covering then creep of capacities these

will more as more talk well. when Capital So the details on Markets Day that progressed provide we'll we on have because we

phase we of prioritization. now said, are I the As in

do want implement So we current what market out to in of those to the environment. actually make sense X,XXX IDs

I go, the those the available, mean, X I we then then and so-called number people opportunities. to mean, stage to make So capture

in will the start Next year, we the analysis sites. European doing also

sites start with larger will to the move sites. and we also So then the smaller

$XXX of a million the we basis. that has on end the that So should can XXXX confidence rate in by run also normally at least capture

question of Bank. question. Deutsche next David with Please from the line comes proceed Begleiter your with Our

Peter capacity and polyethylene outlook new months next and the Ken, both over the can U.S. for market the the Shell context from in Bay you on few here? of the discuss coming part

Ken?

been a doing that of market. for Some quite while They've premarketing now. some

the get So demand absorbed. to said return to very overall to is growth is on just in Obviously, situation like for market. to China, assets, feedstock what's to market these going U.S. around meaningful going they're based the I'm the had going any the And I very the going assets be in supply be earlier, sure competitive what back are

QX. -- where exited that to absorb will time have period we're is where expect in to of in going to a I QX So us now weather there be and that be

earlier, kind and QX, had off to like middle things dropped of range. in really in levelled we've things that of Michael off referred So the

and improve that actions control we're be suboptimal demand taking So to now what meet flow cash doing cash can is to we being able here. our without

from with comes Wells Our Sison question with proceed the Mike Fargo. next Please of your question. line

looking are year. some folks a for degree Most next of recession

second you that needs 'XX? happen when you than half the third potential then that, and half sort to So into for trough heading to I'm what be about just wouldn't of better the quarter be and the And fourth why curious think 'XX the first of quarter, annualize for the Lyondell of 'XX?

important mean you imported in comments call. China? and will about What demand encouraged That's That's will to this be at a China, China. that question, big Very I in made normally to very and as mark. alluded China good question Ken a needs in that XX% we've of just course, well of happen look in know their polyethylene. how

time, lot either. in therefore, in China flowing the point of China, growth this is not and not at a So material into

to of look in an included side, course, on already cost that's at. And So costs, alluded about that. add? element Ken, to We've what to the you costs that hand energy of I situation. mean, call other important electricity And anything also course, the want the in

to back hard predict. right it. hit some Again, headwinds of be feedstocks seeing you've is going energy off, growth getting around to in it's now think and which the and market more I come the

history, at the at. are in comments that have recovered also have is mean then looking That the relatively seen this to have you I'm seen look not stay like if back we that all doesn't But trough markets can that we Michael's I What just saying before. we going how long quickly the well. past, question the as

Please Partners. proceed Vertical the Research from Kevin with of line comes your McCarthy with question. question next Our

could If I reason it's I dramatically, as internally rates inventory your was year-over-year. on customers put but for well up, you've among at look some maybe inventory the or wondering sheet, very ask perception forth low levels it's I to is of up X% inventory your not fourth X% if balance downstream you as speak quarter. the your operating your

looking take it some for so longer inventory rightsize just And to Or that serve you context, operating than that? will you low issue? How year-end? think might these frame by would rates do

I'll start Kevin. from question, your by Thanks results. saying cash management see focusing the on have work and for teams that in done Maybe excellent that an you our

have course, own includes receivables, So recognized payables also inventory we mean, our that, on side, as of one and hand levels, with dealt, and I but you -- as well.

a when bit the look of normally, business, during Now ID it polyolefin we is pipeline that a the little in the have from market. reduced course, at they we to downstream inventory say of allow the market me levels quarter. to seen the the we have don't in lot But channel. third can the inventory have also And what in depends, and that side, in

continue with we've what we'll rate seen in rates quarter. utilization the even adjustment we're to that fourth communicated the to our is adjusting adjusted we've and right. the to you've match mean, the we I that's with and utilization Yes, do we what -- that certainly demand see

Barclays. of the question. line Our Leithead proceed next with your from Mike Please comes question with

Just returns. capital uses and around two

expect question and annually I sort be or a rough any rough the you assume sense least a just there? circular just could just But going to on us of solutions. or to focus this program? of for capital we the spend spend EBITDA this return reask a And you could capital tend of Vincent's And give to return should in give EBITDA is commensurate value-enhanced wanted million area at First, part you and cash see just if on figure $XXX I type low-carbon area? second, March. us hurdles on

Yes. pointed out Thank your past, clearly, our changed. as strategy question, Mike. mean, the of allocation not has we have for course, in you capital I

you are, $X.X X course, EUR CapEx XXXX, in said You investments, rest also the around of look in Well, remember what of I now our the looking marketplace. CapEx upon is sustaining that reflecting growth and billion, billion, at CapEx. happening mining at if we $X.X billion

It of billion. will may not see -- I number to expect lower. quite be you $X So that mean,

will that program not the you number see of terms overall because enhancement the I CapEx we in of value said, uptick therefore, our in you really an of in a an course, as So for have CapEx, because invested year mean, if look our become at They the DNA you it be the next business And will out programs, beginning as company. they have continuous end. don't then in improvement. part program, and lower. the value roll these like enhancement as of

talk start have every on and so merits talking have on. then own numbers. won't own and overall will project So in to then it, in at reflect project its we on the then how the you so in its And years, more beginning, so of operate we will course, not the mean, heavily XX, activities debottlenecking when and about to say, every low-hanging CapEx, But be the probably, fruit, about first OpEx IRR. will there I on you see XX, we

profile terms of So be be, it must is it enhancement course, as of our value will have the IRR very not in projects And capital. said, of we return company a that on is generally dilutive that for high. return project the or these

John Our line question question. Please proceed the of with your Credit comes Roberts next with Suisse. from

[indiscernible] for Matt on John. is This

XQ But Specifically consider your you expenses quarter-over-quarter either we're you plan in profitability will are in to in in other trying quarter-over-quarter. that Europe the the when XQ bridge lower to incurred in to slightly segment? crackers the there incur any O&P-EAI, or noted run

Yes.

You on costs. always know been that extremely we have focused

deep amazed. cost it DNA. quite So LyondellBasell, even I I how was when in discipline, joined I mean the embedded is

of terms our we preservation, daily reduction remain sure cost have mean, but I announced this be we a reduce where but expense of yes, enhancement at can actually Michael? the on program. So certain not continues costs, basis, to that, so in a not managed number cost our value

of I'll a couple Maybe Yes. things. reinforce

has for in help. then And we implications as So this Europe. I will the doubt, current enhancement year. would both taking value our next appropriate you plans, mean, program particular spending also year And said, in actions as and expect, environment are no our Peter

. is from advantage we gives and XXXX, capital it's which a assets our put already long-term cash it's ability reliability So We us in interestingly, as And view navigate team, steadfast. an program Peter safety on have environments incremental, destroy full also to then our we We operations. parallel. also dividend covered demonstrated with others. in sustainable. operate want and And don't our and difficult said, we've said, but value great versus that like to our lean where

confident and actually to on So our manage side. again, ability out we're in stronger the come other

Mitsch Frank of your Research. line for proceed the from Fermium with Please comes question next Our question.

particularly XX% believe to the operating in And also there offer what years third or run saw few any are of wondering to that to be wanted rate a the segments going quarter, lower going Is ago XX% Kim. is in a in Kim higher IND, I we different my tour. I channel IND. I rate. in site a quarter. than the few at was fourth that fourth quarter as that congratulations believe was met average? don't part that area operating you're to I view indicated I that there And within XX% then that. you

new well. remember our year, I And hope should quite Frank. we early visit see next plant again facility start later through up I to next PO/TBA Thank Cataby or yes, as say. you you, the year I the

the question, in to it rates were quarter relates operating As third XX%. the your about

steady basically or equivalent we're So quarter-on-quarter.

differences comments presentation. made far we're my the the in of around as as I that what Some operating is earlier

PXX the as So -- capacity. help PO/TBA to run the the propylene do we or we way in as styrene our oxide the at and is idling be supply monomer have what plants we'll that with well will the that opportunity plant we'll demand styrene higher Maasvlakte improve

come questions. for Vanacker time we to turn the floor allowed gentlemen, final any Ladies to for end comments. and have Mr. of our the I'll back

thoughtful thank LyondellBasell sharing and We weekend. questions. our for great forward soon. you strategy more usual, advance will and value to very all as how your everybody, of a again to you, also plans forward Stay over unlock and safe joining on our Thank coming additional the look you I looking Okay. and meeting all months. you wish

conference. This concludes Thank you. today's

at time. may this Thank disconnect You participation. lines your you your for